(JW Insights) Sep 6 -- Zhejiang Supcon Technology, a Chinese provider of industrial automation products and smart manufacturing solutions, intends to use $290 million of the funds it raised from a secondary listing in Switzerland for overseas expansion, Yicai Global reported on September 5.
Supcon will spend $100 million to set up a unit in Malaysia and the same amount for one in Singapore, $30 million and $10 million to form a subsidiary in Saudi Arabia and one in Kazakhstan, and $20 million and $30 million to increase the capital of its units in Japan and the Netherlands, the firm said.
Hangzhou-based Supcon raised $565 million from a secondary listing on the Six Swiss Exchange in April.
The Singaporean unit will become Supcon's overseas business operations center. It will take advantage of the local high-performance computing power and advanced network technology and talent to focus on promoting the research and development of cutting-edge technologies in automation control systems, industrial software, artificial intelligence, and other fields.
The Malaysian subsidiary will be responsible for building and operating local plants that will produce automation control systems and related products to satisfy the needs of Southeast Asian customers quicker while lowering operational costs.
To help its local partners better digitalize their business operations, the Saudi unit will cooperate with Middle Eastern energy giants, such as Saudi Aramco, to build a leading production base to assemble products such as industrial robots and Internet of Things devices and make automated warehouse management facilities, among other types of products.
Supcon's Japanese arm will use the added capital to set up a local R&D center to make full use of local technologies in the sensor, instrument, apparatus, and other hardware device fields, aiming to make better use of local resources in coordination with Supcon's global business strategy and R&D efforts, said the Yicai Global report.
(Yuan XY/Gao J)